SBA 504 Self Storage Feasibility Study in Arizona

Size and standing of the Arizona self storage record

The Arizona self storage cell holds 27 loans under SBA 504, $40.7 million in all, from FY2017 through FY2026. Arizona is 10 among states by self storage loan count, while Arizona holds self storage at 7 of 39 among its classes. Arizona borrowers took a median of $909,000, which is 1.02x of the figure that self storage borrowers elsewhere receive, in Arizona, close to the SBA 504 norm for self storage. The central half of Arizona loans starts at $732,500 and, for self storage, tops out near $2.2 million; 3.7% of Arizona self storage loans carry a franchise flag.

Arizona holders and counties

Arizona self storage holders: Arizona Capital Source, 9 loans, $10.0 million | The Mortgage Capital Development Corporation, 7 loans, $14.6 million | CDC Small Business Finance Corp., 7 loans, $12.0 million. SBA lists each Arizona self storage holder as current. Geographically, Maricopa (7), Mohave (7), Yavapai (7), Pinal (3) and Pima (2) lead Arizona self storage lending.

How the self storage pipeline moved

Arizona self storage approvals per year: FY2017 0 ($0), FY2018 1, FY2019 3, FY2020 2, FY2021 3 ($5.0 million); then for self storage in Arizona FY2022 8, FY2023 5, FY2024 1, FY2025 3, FY2026 1. The top Arizona dollar year, $8.8 million, was FY2022. In FY2017, Arizona saw no self storage approvals.

How Arizona loans ended up

In Arizona, no cancellation rate is published for self storage; the Arizona cohort is too thin, and silence on self storage is not zero. Charge-offs of Arizona self storage loans are withheld: Arizona funded too few self storage loans in Arizona, so no rate is printed in Arizona for FY2017 to FY2021, and the self storage gap is not a zero.

Arizona storage facilities under SBA 504

A storage facility financed under SBA 504 makes the Arizona study defend the land and building: competing supply, rents for each unit type, and absorption through summer heat and population growth. Construction cost, including climate control, belongs against the $909,000 median. Coverage should be shown at slow lease-up, and the appraiser will capitalise stabilised net income, so operating expenses must be documented.

Arizona storage: vehicles included

There is no separate code for RV and boat storage, which sits in self storage or other warehousing, so a Arizona vehicle-heavy plan needs its own proof.